The estimates of the magnitude of government spending increase needed to have ended the 2007-2009 recession in the United States vary, based on the actual size of the expenditure multiplier, and range from
A) $250 million to $1 billion.
B) $50 billion to $250 billion.
C) $400 billion to $2.5 trillion.
D) $5 trillion to $15 trillion.
C
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The short run is a period of time
a. less than one year b. greater than one year c. during which all resources are variable d. during which at least one resource is fixed e. during which at least one resource is variable
If M = $1,200 billion and V = 4, then total spending is _______________billion. Then velocity falls to 2 and M rises to $2,000 billion, so that total spending is now _______________ billion, and GDP has _________________
A) $4,800; $4,000; declined B) $300; $1,000; risen C) $4,800; $4,000; risen D) $1,204; $2,002; risen
On a linear demand curve, demand is ________ at small quantities than it is at the middle of the demand curve.
A. more elastic B. less elastic C. equally elastic D. There is insufficient information in the question.
The concept of opportunity cost
A. can be applied to the analysis of any decision-making process. B. applies to consumers but not to firms. C. refers only to actual payments and incomes. D. is relevant only to economics.